The UAE has made strong efforts to diversify its economy away from oil dependence over the past decade through initiatives like Dubai Plan 2021 and Abu Dhabi Economic Vision 2030. Sectors targeted include- tourism, logistics, healthcare, education, renewable energy, aerospace and financial services.
Tourism numbers have grown rapidly with attractions like Dubai Expo 2020 and new theme parks/resorts driving visitor arrivals to over 21 million in 2019 (Department of Culture and Tourism, 2022). Healthcare also expanded through medical tourism and world-class facilities that have positioned Dubai and Abu Dhabi as regional hubs.
Logistics infrastructure has been bolstered through investments in seaports, airports capable of handling massive air cargo volumes and free zones facilitating trade/manufacturing links. Sectors like aviation have also been nurtured through the growth of Emirates Airline and MRO clusters.
Renewables capacity has scaled up to over 5GW through large-scale solar projects like- Mohammed Bin Rashid Al Maktoum Solar Park and floating solar farms on dams (Ministry of Energy and Infrastructure, 2022). Green hydrogen is another emerging export opportunity.
While oil still dominates GDP—non-oil sectors now account for over 60% of total output according to official statistics, demonstrating progress on the economic diversification agenda. Continued growth is expected across priority industries in the coming years.
While progress has been made, further efforts are needed to strengthen emerging industries and boost their competitiveness globally. For example— the healthcare sector requires more R&D investment and public-private partnerships to develop specialized services and medical technology exports.
Education also possesses potential if the UAE can establish world-class universities and vocational institutes to train talent aligned with industry needs. Developing a robust IP framework and startup support programs around university research can aid commercialization.
Sustainable tourism presents opportunities in areas like ecotourism, cultural heritage and wellness. Investing in unique natural and cultural assets while ensuring responsible management of environmental impacts will enhance the long-term value proposition.